Phase 1:

4 Individuals want to form the Big Bad Violin Brewing Company

Individual 1 Gives $100,000 for 1,000 shares

Individual 2 Gives $10,000 in cash and a Brew making equipment FMV $110,000, Basis $40,000, Debt of $20,000 for 1,000 shares

Individual 3 Gives brewery equipment FMV $120,000, basis $50,000 and receives $20,000 in cash from the corporation plus 1,000 shares of stock.

Individual 4 Give Warehouse FMV $200,000, basis $70,000, Debt $100,000

What are the tax effects to the individual shareholders and corporation? Code Sections?